01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
AMETEK, Inc. (AME) reported a strong first quarter for fiscal year 2026, with significant year-over-year growth in net sales, operating income, and diluted earnings per share.
Net sales increased by 11.3% to $1.93 billiona, driven by a combination of organic growth, strategic acquisitions, and favorable foreign currency translation. The company achieved record operating income and backlog, underscoring the effectiveness of its operational initiatives and recent acquisitions, including FARO Technologies and LKC Technologies. Profitability metrics also showed robust improvement, with operating income up 13.2% to $514.9 million and diluted earnings per share rising 14.5% to $1.74.
The company's strategic focus on its Electronic Instruments Group (EIG) and Electromechanical Group (EMG) continues to yield positive results, with EMG demonstrating particularly strong operating margin expansion. AMETEK also maintained a healthy financial position, with substantial operating cash flow and a decreasing debt-to-capital ratio, signaling effective capital management.
02—Key points
Key Highlights
- Net sales increased by 11.3% to $1.93 billion for Q1 2026 compared to $1.73 billion in Q1 2025.
- Diluted earnings per share (EPS) rose 14.5% to $1.74 in Q1 2026 from $1.52 in Q1 2025.
- Operating income grew 13.2% to $514.9 million, reflecting strong operational performance and acquisition integration.
- The company achieved record orders of $2.22 billion and a record backlog of $3.87 billion as of March 31, 2026.
- Acquisitions, notably FARO Technologies (July 2025) and LKC Technologies (January 2026), contributed positively to revenue growth.
- Electromechanical Group (EMG) showed significant operating margin expansion, increasing by 380 basis points.
- AMETEK returned capital to shareholders through $77.8 million in dividends paid and $27.9 million in share repurchases during the quarter.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in Q1 FY2026, Ametek Inc kept $0.21.
- Revenue$1.93B100.0%
- Cost of revenue−$1.21B62.8%
- Gross profit$717.6M37.2%
- Operating costs−$202.6M10.5%
- Operating income$514.9M26.7%
- Interest, other & tax−$115.6M6.0%
- Net income$399.4M20.7%
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 30, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $1.93B$1.73B | +11.3% |
| Cost of Revenue | $1.21B$1.11B | +9.4% |
| Gross Profit | $717.56M$625.00M | +14.8% |
| SG&A Expenses | $202.62M$170.17M | +19.1% |
| Operating Expenses | $1.41B$1.28B | +10.7% |
| Operating Income | $514.94M$454.83M | +13.2% |
| Net Income | $399.36M$351.76M | +13.5% |
| EPS (Basic) | $1.74$1.52 | +14.5% |
| EPS (Diluted) | $1.74$1.52 | +14.5% |
| Shares Outstanding (Basic) | 228.90M230.67M | −0.8% |
| Shares Outstanding (Diluted) | 229.84M231.54M | −0.7% |
05—Questions
Frequently Asked Questions
What were the main drivers of revenue growth in the first quarter of 2026?
Revenue growth was driven by a combination of factors: a 5% increase in organic sales, a 4% contribution from recent acquisitions (FARO Technologies and LKC Technologies), and a 2% favorable impact from foreign currency translation. International sales, particularly in Europe and Asia, also saw significant growth.
How did recent acquisitions impact AMETEK's financial performance?
The acquisitions of FARO Technologies and LKC Technologies positively contributed to revenue and order growth. While they had a dilutive impact on operating margins (approximately 80 basis points on consolidated operating margins and 140 basis points on EIG operating margins), the company's operational excellence initiatives helped to offset some of this impact and drive overall margin improvement when excluding acquisition effects.
What is AMETEK's current financial health and liquidity position?
AMETEK demonstrates a strong financial position. Operating cash flow increased by 8.1% to $451.5 million. The company's debt-to-capital ratio decreased to 16.6% and the net debt-to-capital ratio decreased to 13.4%. AMETEK has substantial available borrowing capacity under its revolving credit facility and believes it has sufficient resources to meet its obligations.
Are there any significant risks or uncertainties mentioned in the filing?
The company notes risks related to geopolitical developments (Middle East conflict), tariffs and trade disputes, global supply chain disruptions, and evolving macroeconomic conditions. Management is actively monitoring these factors and implementing strategies to mitigate their impact.
06—Continue